The Bihar government is preparing to provide significant financial relief to tenants and landlords across the state. The Prohibition, Excise and Registration Department has drafted a proposal to reduce the registration fee for rent and lease agreements by 50 percent. A high-level committee has been established to finalize the details of this new fee structure. The primary goal of this move is to encourage more people to legally register their rental contracts, as currently, very few residents opt for formal registration due to high costs.
👉: Bharat Bandh on February 12: Banks and Transport Services to Face Disruption, Check What stays Open।
How much money will you save on registration?
Under the current rules, the registration fee stands at 2 percent of the total rental value. The new proposal suggests lowering this fee to just 1 percent. The stamp duty will remain the same at 0.5 percent. This brings the total cost down from 2.5 percent to 1.5 percent. For example, if the total rental value is 10 lakh rupees, the registration cost will drop from approximately 25,000 rupees to 15,000 rupees. This change will directly save the common man about 10,000 rupees on a single agreement.
Why is a registered agreement necessary?
Most people in Patna currently use a simple notary agreement on a 100 rupee stamp paper to save money. However, officials state that notary agreements are not legally valid evidence in court if a dispute arises between the landlord and the tenant. Only an agreement registered at the Registry Office gives you full legal protection. The department notes that out of over 10 lakh tenants in Patna, only about 5,000 register their agreements annually. This fee reduction aims to make legal security affordable for everyone.
